Taiwan's Record Defence Budget: An Investment in Peace, Says President

Taiwan's President Lai Ching-te has confirmed that the government's proposed defence spending for the coming year will exceed T$1 trillion for the first time, a move he described as an investment in peace. The figure, which represents a 16% increase, is set to be formally unveiled by the cabinet on Thursday.

Speaking at a budget meeting, Lai confirmed that the overall defence allocation will reach T$1.1225 trillion, surpassing 3% of the nation's gross domestic product. This marks a significant milestone in Taiwan's efforts to modernise its military capabilities.

"Investing in defence is investing in peace," Lai said, according to a transcript released by his office. He added that the spending "demonstrates Taiwan's determination to strengthen its self-defence capabilities" and will help maintain stability in the Taiwan Strait and the wider region.

The announcement comes amid heightened military and political pressure from China, which claims Taiwan as its own territory. Beijing has increased its military activities near the island, including almost daily operations and periodic war games. Taiwan's government has made military modernisation a key policy, including developing domestically-built submarines.

The proposed budget also reflects calls from Washington for Taiwan to increase its own defence spending, a stance Lai has embraced.

However, the plan faces potential hurdles in Taiwan's opposition-dominated parliament. The two main opposition parties have indicated they will scrutinise spending plans and cut waste, having only recently passed this year's budget after months of delays. Lai has urged lawmakers to review the budget based on principles of professionalism, reasonableness, and proportionality.